Tag Archives: bitcoin

One Person Sold 195K Bitcoins Today Making $161 Million

The price of bitcoin has gained a lot since last week. Right now the average price of a bitcoin is trading around $800. Bitcoin is being traded right now because bitcoin exchanges are always open. Normal currency exchanges are closed in the weekend.

Today something interesting happend on one of the exchanges. There was a massive sale by one person of 195k bitcoins. The person who did this transaction made a total of $161 million. The Washington Post thinks the transaction was probably done by Bitstamp to reshuffle some of its accounts it holds for people. Like a bank transfering money from one vault to another.

Blockchain.info: 195k bitcoin transaction

Blockchain.info: 195k bitcoin transaction

A transaction like this is very rare because there are only 18 bitcoin accounts in the world that have more than 100k coins in it. The table below is coming from a Paper done by two people from The Weizzman Institute Of Science in Israel.

Biggest bitcoin accounts

Biggest bitcoin accounts

The transaction was so big that the average transaction volume in bitcoins surpassed the transaction volume of an average day on paypal.

Bitcoin transaction volume

Bitcoin transaction volume

This Chart Of Bitcoins Looks A Lot Like An Average Bubble

I love reading about bubbles. It’s the psychological aspect of it that I like the most. Greed and human beings.

The price of Bitcoins has gone parabolic in the last few days. The price went up 152% this month alone! The value of all Bitcoins outstanding is now $ 1 billion.

Some say that the way the Cyprus bailout handles depositors and the capital controls forced on savers is the cause for this rise in the last month.

Too much people are flocking into Bitcoins out of fear for another Cyprus style bailout and it is starting to make the Bitcoins chart look like an average bubble. Compare these two charts.

Bitcoin price in USD at Mt.Gox:

Bitcoins mt gox

How an average bubble forms:

average bubble chart

My take is that we are pretty much near the end of the parabolic rise. But ofcourse these things can continue longer than most can imagine..